It seems as though the luxury real estate market has recently shifted to favor buyers instead of sellers, reports Anne Machalinski of MarketWatch.
Many luxury homes that have hit the market recently have had their prices slashed to entice buyers, like a town house in Manhattan that was bought for $31 million in 2013, re-listed for $32.5 million a year and a half ago—and then dropped down to $22 million three months ago.
Jed Garfield, president of Leslie J. Garfield & Co., a New York–based brokerage that focuses on town houses, said he started noticing the trend in late 2015. “The market is not what it was,” Garfield said. There’s an expectation that real estate prices will rise 3% to 5% each year, he added, but buyers won’t stand for that anymore. “You’d be very hard-pressed to find anybody who would pay more than 2015 prices today,” he added.